Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had recent discussions with her counterpart in the Welsh Government on the application of the Barnett formula to agriculture funding in Wales from the 2025-26 financial year.
Answered by Darren Jones - Chief Secretary to the Treasury
I regularly engage with Welsh Government ministerial colleagues. Engagement takes place at the Finance: Interministerial Standing Committee (which is next due to meet on the 27th of February) and bilaterally, as well as through regular correspondence, on issues relating to devolved government funding including the application of the Barnett formula.
Agriculture and fisheries funding from 2024-25 has been added to the devolved governments’ baseline funding from 2025-26 which means the funding amount will be maintained in cash terms. Funding is no longer ringfenced and the devolved governments can choose how to spend this in devolved areas. In future, the Barnett formula will apply in the normal way to agriculture and fisheries funding provided to the Department for the Environment, Food and Rural Affairs in England.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to extend full expensing to leased vehicles to support the road haulage industry in Wales.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The UK has one of the most generous and competitive capital allowances regimes in the world and is the only major economy with permanent full expensing.
The government recognises the case to extend full expensing to leasing and will explore making this change when fiscal conditions allow.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans her Department has to support the Welsh road freight industry.
Answered by James Murray - Exchequer Secretary (HM Treasury)
At Autumn Budget 2024, the Government announced continued support for people and businesses, by extending the temporary 5p fuel duty cut and cancelling the planned inflation increase for 2025-26. This maintains fuel duty rates at the levels set on 23 March 2022 for an additional 12 months, and represents a saving for drivers next year of overall around £3 billion. Vans will see an average saving of £126 and heavy goods vehicles will see an average saving of nearly £1,100.
The Chancellor makes decisions on tax policy at fiscal events in the context of public finances.
It is for the Welsh Government to allocate funding in devolved policy areas, including to support the Welsh road freight industry; they are accountable to the Senedd for those decisions. The Welsh Government will receive funding through the Barnett formula for any changes to UK Government department budgets in the usual way. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of (a) the number of people eligible for compensation and (b) the total cash value of the compensation owed under the ruling by the Court of Appeal from October 2024 that certain commissions that lenders paid to car dealerships for arranging loans were unlawful.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
This is a complicated issue and the government is working closely with the Financial Conduct Authority and Prudential Regulation Authority. The government is pleased that the Supreme Court will hear an appeal from 1-3 April and hopes that its judgment will provide clarity for firms and consumers.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of extending deemed reseller rules to include UK-established sellers.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Since 1 January 2021 overseas sellers, or online marketplaces where they facilitate the sale, are required to be registered and account for VAT for supplies of low value imports of £135 or less. Where an overseas seller sells goods located in the UK at the point of sale via an online marketplace, the online marketplace is liable for the VAT for goods of any value.
The changes ensure a level playing field for UK high street and online retailers, ensure the continued flow of goods at the border and improve compliance. Certified analysis by the Office for Budget Responsibility (OBR) estimates the changes will raise £1.8 billion per annum by 2026-27.
The Government keeps all taxes under review as part of the policy making process.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the revenue raised by extending deemed reseller rules to include UK-established sellers.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Since 1 January 2021 overseas sellers, or online marketplaces where they facilitate the sale, are required to be registered and account for VAT for supplies of low value imports of £135 or less. Where an overseas seller sells goods located in the UK at the point of sale via an online marketplace, the online marketplace is liable for the VAT for goods of any value.
The changes ensure a level playing field for UK high street and online retailers, ensure the continued flow of goods at the border and improve compliance. Certified analysis by the Office for Budget Responsibility (OBR) estimates the changes will raise £1.8 billion per annum by 2026-27.
The Government keeps all taxes under review as part of the policy making process.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the extent of VAT non-compliance by overseas retailers selling (a) goods and (b) services in the UK through online marketplaces.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Since 1 January 2021 overseas sellers, or online marketplaces where they facilitate the sale, are required to be registered and account for VAT for supplies of low value imports of £135 or less. Where an overseas seller sells goods located in the UK at the point of sale via an online marketplace, the online marketplace is liable for the VAT for goods of any value.
The changes ensure a level playing field for UK high street and online retailers, ensure the continued flow of goods at the border and improve compliance. Certified analysis by the Office for Budget Responsibility (OBR) estimates the changes will raise £1.8 billion per annum by 2026-27.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to review the (a) operation and (b) adequacy of the Barnett Formula.
Answered by Darren Jones - Chief Secretary to the Treasury
There are currently no plans to modify the operation of the Barnett formula. The Barnett formula has stood the test of time because it is simple, efficient and provides a clear and certain outcome.
The Welsh Government currently receives at least 20% more funding per person than equivalent UK Government spending in the rest of the UK. That translates into over £4 billion more in 2025-26.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an estimate of the value of increased national insurance contributions from public sector organisations included within the StatsWales definition of public sector but omitted from the definition used by the Office of National Statistics.
Answered by Darren Jones - Chief Secretary to the Treasury
The Treasury routinely uses the Office for National Statistics (ONS) classification of the public sector boundary, for example in relation to public sector spending, public sector borrowing and public sector debt.
The latest forecasts for tax revenues were published alongside the Office for Budget Responsibility’s (OBR) October Economic and Fiscal Outlook. These forecasts are based on economic determinants, including wage growth and employment levels. Detailed tax receipts forecasts can be found here: Economic and fiscal outlook – October 2024 - Office for Budget Responsibility.
A Tax Information and Impact Note that covers the employer NICs changes was published by HMRC on 13 November.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 2.40 of the Autumn Budget 2024, published on 30 October, what assessment she has made of the potential merits of using the StatsWales definition of public sector workers for determining exemptions.
Answered by Darren Jones - Chief Secretary to the Treasury
The Treasury routinely uses the Office for National Statistics (ONS) classification of the public sector boundary, for example in relation to public sector spending, public sector borrowing and public sector debt.
The latest forecasts for tax revenues were published alongside the Office for Budget Responsibility’s (OBR) October Economic and Fiscal Outlook. These forecasts are based on economic determinants, including wage growth and employment levels. Detailed tax receipts forecasts can be found here: Economic and fiscal outlook – October 2024 - Office for Budget Responsibility.
A Tax Information and Impact Note that covers the employer NICs changes was published by HMRC on 13 November.